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A market economy answers the 3 basic economic questions, Key terms. In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.
An economy is a system of interconnected production and consumption activities that ultimately determine the allocation of resources within a group. The production and consumption of goods and services as a whole meet the needs of the people who live and work there.
A nation's economy is the wealth it derives from business and industry. The Japanese economy grew by more than 10% every year. 3. Uncountable nouns. The economy is about using the minimum amount of money, time, or other resources necessary to accomplish something and not wasting anything. Economic growth increases government capacity and the supply of public goods. As the economy grows, the state taxes these revenues, providing the capacity and resources necessary to provide the public goods and services that citizens need, such as health care, education, social protection, and basic public services. You can get
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